Program Scope: Table 2 provides a detailed breakdown on the distribution
?Lr*roS ^ ParV°r each type of grant in FY 1983 and FY 1984. In FY
1984 5.2 million from Part B was transferred to the new Endowment Grant
The historically black colleges receive significant funding from this pro-
gram. The Administration, to meet its goal of increasing Federal funding
to black colleges, has made significant improvement in increasing black
college funding through this program. The improvement can be seen in
Table 1: black colleges represent 29 percent of the continuation funding
but account for 53 percent of the new funding. Black colleges account for
16 percent of the colleges that have continuation finding but account for
25 percent of the colleges with new funding.
Program Effecti veness: In October 1983, the Department completed a study
of the Institutional Aid Program and a workbook for program managers. The
workbook suggests that funded activities must be an integral part of the
institution's development plan if the activities are to be successful.
The president and other principal administrative officers must support
these plans and have an active role in the Institution's developmental
activities. There must be strong administrative support for activities
begun before receipt of Federal funds. Accounting procedures must be in
place to track developmental costs of the project.
As the study explained, to be successful an activity must make a significant
contribution to the institution's development and viability. Development
may be less a matter of growth than a matter of attaining a modest, more
cost-effective operation. Conversely, developmental activities may lead to
desirable but more costly operation with the potential for increased revenue.
In either case, as the study showed, these developmental activities take
more time than is commonly believed. The study also showed that the insti-
tution must be committed to the success of the activity; in fact, if the
Federal funding exceeds 10 percent of the institutional revenue, the
institution is not financially committed and the activities will fail.
D. Plans for Program Improvement and Recommendations for Legislation
The FY 1984 funding level was $134,416,000. Appropriation language was
added in both FY 1984 and FY 1985 to ensure funding for historically black
colleges at a level of not less than $45,741,000, an increase over the
FY 1983 obligation.* The appropriation language applies the setaside
for black colleges to all of Title III, and not just for Part B as is
stated in the legislation.
The Challenge Grant Program is being terminated. No new awards have been
made since FY 1983. Challenge Grant funds, except for those needed to
complete non-competing continuation awards through FY 1986, have been
combined with the funds that must be provided from the cost-sharing portion
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of the Special Needs Program.ate, or professional students (enrolled or accepted